Understanding and Underwriting Diabetes

Understanding and Underwriting Diabetes

Diabetes is one of the most common underwriting issues faced when pre-qualifying a client for insurance coverage.  The information needed to properly pre-qualify a client with Diabetes is vital to accurate quoting and a successful application.  It is important to understand what diabetes is…

A disease impairing the body’s ability to produce or respond to the hormone insulin. This causes abnormal metabolism of carbohydrates and increased levels of glucose in the blood.

There are two forms of Diabetes, Type 1 and Type II:

Type 1 is a chronic condition with which the pancreas produces little to no insulin

Type 2 is a chronic condition with which the glucose in the blood is not efficiently converted into energy

Common treatments can include one or a combination of diet and exercise, oral medication, injected non-insulin medication or insulin injections

In order to accurately pre-qualify a client with Diabetes, it is important that you provide the following information.  Diabetes-specific pre-qualification forms are available upon request.

  • Diagnosis
  • Current build
  • Date of diagnosis
  • Current medication, including date started
  • Any medication changes in the past year
  • Treatment
  • Current A1C (level of blood glucose)
  • Any Peripheral Neuropathy
  • Any other health conditions (some health concerns in combination with Diabetes such as smoking or heart issues can have a negative impact on underwriting results, or even lead to a decline)

Possible Underwriting Outcomes:

Life Insurance

People with Type I diabetes can often qualify for Life Insurance at Tables 2 through 8, and those with Type II can often qualify at Standard to Table 8.

Medicare Supplement

A person with diabetes might not qualify for an underwritten Medicare Supplement if the disease is in combination with a heart disorder or high blood pressure. Most Medicare Supplement carriers follow the 2-2-2 rule: 2 (or fewer) diabetes medications, 2 (or fewer) high blood pressure medications, and 2 or more years of taking the medications.

Long Term Care Insurance

People with diabetes can sometimes qualify for Long Term Care Insurance.  The guidelines vary by carrier, so proper pre-qualification is essential.

If you have a clients with Diabetes and would like guidance going through the possibilities, please contact Insurance Advisors and we are happy to help.

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